Assume the nominal dollar-per-euro ($/€) exchange rate appreciates by 2%, U.S. prices rise by 5% and Euro-Area prices rise by 3%. By approximately how much does the real exchange rate change?
a. 3%
b. There is no change.
c. 4%
d. 5%
e. 6%
.B
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The Glass-Steagall Act, before its repeal in 1999, prohibited commercial banks from
A) issuing equity to finance bank expansion. B) engaging in underwriting and dealing of corporate securities. C) selling new issues of government securities. D) purchasing any debt securities.
Compared to the previous three decades, after 1982 recessions have been ________ and expansions have been ________
A) longer, longer B) shorter, shorter C) longer, shorter D) shorter, longer
The government's budget deficit is best represented by which of the following equations?
A) Budget deficit = Government purchases of goods and services + Transfer payments + Interest payments on existing debt + Seigniorage B) Budget deficit = Government purchases of goods and services + Transfer payments + Tax revenue+ Newly issued government bonds C) Budget deficit = Government purchases of goods and services + Interest payments on existing debt + Newly issued government bonds + Seigniorage + Transfer payments - Tax revenue D) Budget deficit = Government purchases of goods and services + Transfer payments - Tax revenue + Interest payments on existing debt
The more elastic the demand curve, _____
a. the smaller the proportion of a tax paid by the suppliers b. the smaller the proportion of a tax paid by the demanders c. the more elastic the supply curve d. the more the tax can be shifted to demanders